Author 




BookJjLJz.5. 



18^ 



Title 



Imprint 



or THE 



JOINT SELECT COMMITTEE 



ox 



COMMON SCHOOL -MONIES. 



NASHVILLE, 
J. GEO. HARRIS, PUBLIC PRINTER. 

1839. 



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% 



REPORT- 



The Joint Select Committtee who were appointed by a reso- 
lution of the General Assembly of the 16th November, to en- 
quire into the situation of the Common School monies of this 
State; whether the Superintendent of Public Instruction had used 
due diligence in collecting the Common School monies; whether 
he has properly invested the said monies as by law he is required; 
whether he has distributed the sums by him required to be dis- 
tributed for the benefit of Common Schools; and whether there 
has been any waste or loss of said monies or any part thereof, 
since the appointment of said Superintendent; beg leave res- 
pectfully to report: 

That, immediately after their appointment they entered upon 
the discharge of their duties. They found the matters submitted 
to their investigation; much more difficult and complicated than 
they at first imagined. They also found that it was most con- 
venient for them to examine the receipts and disbursements of 
the Superintendent in connection, that they might the better 
compare them. 

With regard to the diligence used by the Superintendent in the 
collection of the school monies; The fourth section of the act 
creating the office requires ''the mones, notes, bonds, stocks, se- 
curities, and other property belonging to the State or Common 
School Fund, in the possession or under the control of the 
agents appointed to close the concerns of the Bank of the State, 
the county Common School Commissioners, and county Bank 
agents," to be delivered, on demand, to the Superintendent,* or 
the authorized agent of the "Board of Common School Commis- 
sioners." He is also authorized in the fifth section of the act, 
to take possession of the monies and securities in the hands of. 
the "late Treasurer of East Tennessee" which belonged or were 
appropriated to the use of Colleges, Academies, or Common 
Schools. For the purpose of collecting these monies and effects 
the act authorizes the appointment of an agent in each county. 
These agents were to be furnished with a schedule of all ac- 
counts against the debtors to the School Fund in their respective 
counties; and they were to be required to call in the ten per 
centum on the amount of each debt at the first renewal, and 
twenty-five per centum at the end of each succeeding six months; 
so that the whole would be paid at the end of two years. The 
Superintendent went into office about the first of March 1836, 



How this duty of collecting these monies has been perfprmed 
will be better seen by a table hereto annexed, marked A, which 
the committee have prepared with much care, from the books 
and papers in the Superintendent's office. The first column 
shows the amount of monies due from each county at the time 
the Superintendent went into office. It agrees with a report 
made to the Legislature of the State on the 1 7th October 1836, 
except, that in that report Knox county is charged with 14,- 
152 71 dollars, being 4,967 28 dollars more than is now charged. 
This discrepancy was occasioned by the Bank agent at Knox-' 
ville, who, in making out the aocount against that county, char- 
ged interest upon the fund, which he ought not to have done. 
For, the Commissioners had a right to consume the interest for 
purposes of education. From this statement there seemed then 
to be due from the county Common School Commissioners, and 
county agents, the sum of four hundred and twenty-one thou- 
sand six hundred and fifty-two dollars and eighty cents. 

The second column exhibits the monies collected by the coun- 
ty agents, appointed under the act of 1836, and includes not on- 
ly the monies drawn from the hands of county Common School 
Commissioners, but also the taxes collected from School Funds, 
and tippling houses, up to the passage of the act of 1838, requi- 
ring the same to be paid into the Treasury of the State; also in 
some instances monies due the old Bank. The amount collected 
from Shelby county, includes the bonus up to January 1838, and 
part of the dividends derived from the Farmers and Merchants 
Bank at Memphis. That of Knox county includes a portion of 
the old Bank monies. The third column exhibits an estimated 
balance due from the several counties, exclusive of old Bank 
judgments and claims. The fourth column is an estimate of the 
amount of these debts that are supposed doubtful. By an addi- 
tion of the sum yet due and owing, with the amount collected 
the whole amounts to three hundred and eighty-nine thousand 
three hundred and ninety-six dollars and thirty -nine cents; which 
(supposing the whole amount collected to have belonged proper- 
ly to the county School Fund) leaves a balance of thirty-two 
thousand two hundred and fifty-six dollars and forty-one cents, 
of the amount originally charged against the counties. This bal- 
ance is accounted for, by the investment of the School Fund of 
Davidson, Rutherford, Bedford and Sevier counties, in works of 
Internal Improvement. Your Committee have no positive testi- 
mony that any of the agents have collected monies which they 
have, not accounted for; yet from some circumstances they are 
induced to believe that a few of them have not acted properly 
on this point. The Superintendent has not obtained, from time 
to time, such lists of claims, paid and unpaid from the different 
agents as would be entirely satisfactory to the Committee* 



5 

The last column in this table shows a very great inequality id 
the amount of monies paid for tippling license in the different 
counties. Your Committee are satisfied that monies have been 
collected for these license which have never been paid over to 
the Superintendent. The amount collected on tippling license is 
included in the $299,154 94 collected by the agents. 

The Committee, after obtaining this result, proceeded to as- 
certain the sums collected by the Superintendent from all other 
sources, and, after examining his books and other documents, 
found that the same amounted to the sum of five hundred and 
seventy-seven thousand, two hundred and eighty-eight dollars 
and thirty-nine cents: making in all of total receipts from the 
first day of March 1836, to the ISth day of November 1839, 
the sum of eight hundred and seventy-six thousand, four hun- 
dred and forty-three dollars and thirty-three cents. The amount 
received since the first day of October last, is $8,492 28, which 
taken from the amount reported on the 18th November last, 
leaves a balance, which he had received up to the first day of Oc- 
tober, of $867,951 05; that is, one thousand one hundred and six- 
ty-one dollars, and eighty-six cents more than was stated in his 
last report to have been received up to the eighth of October, the 
date of his report. Of this difference, one thousand dollars is ac- 
counted for, by a mistake of the Superintendent in adding up 
the items in the account of Shelby county. 

Your Committee procetded to ascertain and make out a table 
of the monthly receipts and expenditures of the Superintendent 
from the first day of March, 1836, to the ISth November, 1839. 
This table, the first four columns of which were carefully con- 
densed from the books of the office, and under the eye of the 
Superintendent, is hereto annexed, marked B. The fourth col- 
umn will show the monies paid out by the Superintendent du- 
ring each month of his official action. By comparing these 
monthly disbursements with the monthly receipts in the third 
column, it will be seen that the amount which remained in his 
hands, after making the investments and paying the expenses in- 
cident to his office, was constantly increasing from the first month 
of his service up to the 18th of November, 1839. This increase 
was so constant and rapid as to induce the Committee to make 
out the balances in the hands of 'he Superintendent at the end 
of each month. This result will be found in the seventh column 
of the table. It will be seen that on the last day of March, 
1837, only thirteen months after ho went into office, he was in- 
debted to the fund in the sum of $72,414 35; at the end of the 
next twelve months the balance against him amounted to $141,- 
218 83; and in four months more it had swelled up against him 
to the amount of $170,448 86; at the end of March, 1S39, it 
was $112,7J5 45. On the 18th day of November, the day your 



6 

Committee commenced their investigations, the balance against 
the Superintendent, as shown by his own books, was one hun- 
dred and fifteen thousand four hundred and twenty-five dollars 
and eighty-three cents. The average amount in his hands du- 
ring his term of service has been upwards of eighty-seven thou- 
sand dollars. It will be seen from an interest account which the 
Committee have added to this table, that the amount which the 
Superintendent retained in his hands, would, if the same had 
been deposited at an interest of six per centum, which could 
have been done, have added toti t grand total the sum of nine- 
teen thousand four hundred and twenty-eight dollars and ninety- 
eight cents. They have calculated this interest for the whole 
time upon the principal only. The question here arises whether 
the Superintendent has pursued the law in the course he has ta- 
ken upon this subject. 

The 11th section of the 23d chapter of the act of 1836 directs 
that as fast as the school monies shall be collected by the county 
agents, or other persons, they shall be paid over to the Superin- 
tendent of Public Instruction, "who shall invest the same by sub- 
scribing for stock of the Planters Bank of Tennessee, in the 
name of the Board of Common School Commissioners; and who 
shall in like manner re-invest the profits as they arise on the cap- 
ital stock, or deposit the same on the best terms and for the high- 
est rate of interest he may be able to obtain, or he may deem 
most advisable." The course here laid down was obvious. The 
monies collected he "shall invest" by subscribing for stock of the 
Planters Bank. There is no discretion or alternative left. So 
far as ihe profits of the investments are concerned, "he shall, in 
like manner," either re-invcst or deposite them for the highest 
rate of interest he may be able to obtain. There is no authori- 
ty here to lend the money collected, or to use it in shaving notes 
or buying bills. When the law is plain, the rule is equally plain 
that there is no discretion but to pursue the law. 

But, in the account of receipts exhibited to us by the Super- 
intendent, he has charged himself with interest received to the 
amount of seven thousand three hundred and fifty-six dollars and 
twenty-nine cents. If we compare the interest account which 
he has made out, with an account of the interest upon the mo- 
nies he collected and failed to invest, as is shown in the last col- 
umn of table B, it will stand thus: 

Int. Acc't. of Sup. Int. really due at 6 por cent. 

July 5, 1S37, $2,025 00 $3,773 00 

Oct. 4, » 1,012 50 1,187 13 

Nov. 4, « 500 00 448 49 

Jan. 23, 1839, 3,075 10 8,54G 43 

Oct. 8, " 743 69 5,129 85 



$7,356 29' $19,084 90— difference $11,728 61 



It is obvious, that it' the Superintendent could, by any effort 
of fancy so construe the law as to justify the use to which we 
will hereafter show that he made of the money, he should at 
least pay legal interest for the same. But from the foregoing 
statement, it appears that up to theSthof October last there was 
a deficiency of eleven thousand seven hundred and twenty-eight 
dollars and sixty-one cents in this item, to which, if we add the 
interest up to the 18th November, that is, $334 28, we find a to- 
tal balance of interest against the Superintendent not accounted 
for of twelve thousand and sixty-two dollars and sixty-nine cents. 

It is true that stock of the Planters Bank, for some time in 
1837, was selling very low in the eastern markets. Yet no one 
doubted but the stock required to be taken would be safe. The 
Superintendent was himself a director of the Bank. During the 
most critical period of the Bank's existence, the Superintendent 
had confidence in it. Between the last day of May aud first day 
of November, 1837, he paid into that Bank, $61,700 for stock. 
Why then did he not invest the whole of the large balance which 
the account shows to have been in his hands during these months? 
If a part was safe, the whole would have been safe. But, if the 
general want of confidence, inspired by the suspension of the 
Banks in May, 1837, had been sufficient excuse for not investing 
the monies in the hands of the Superintendent during its exist- 
ence, the case was different during the first three months of 1837; 
for then the Banks had not suspended — they were in the full tide 
of prosperity. If during this period we examine the balances in 
his hands, we find that they range from forty four thousand to 
seventy two thousand dollars. The Banks resumed specie pay- 
ments in January, 1838. And again we find that he has failed 
to invest the monies in his hands. The balance in his hands, had, 
by the end of January 1838, increased to $12-1,910 — an amount 
below which it seldom fell from that time to the present. 

Your Committee addressed a note to the President of the 
Planter's Bank, inquiring "what were the best terms on which 
the Common School monies could have been deposited in that 
Bank from the first March 1836, to first July 1838. In answer, 
he says, "1 beg to state that in my opinion the Bank would have 
allowed interest at the rate of 6 per cent, per annum, for any 
period not less than six months." So that, if the monies collect- 
ed had even been deposited in the Bank at 6 per cent, it would 
have been far better than to have formed a loan bank under the 
sole control of the Superintendent, who after using it, as we will 
heieafter show, now offers to the State for the use thereof, the 
poor compensation of two and a fourth per centum per annum. 

Your Committee have examined the items of expenditure as 
exhibited in the fourth column. They have obtained information 
from the Banks of the monies paid therein for stock under ths 



8 

Acts of 1836 and 1838. They have also seen the certificates of 
stock taken by the Superintendent in the Planter's Bank; also 
certificates of stock taken by the County Common Schcbl Com- 
missioners in the Union and Planter's Bank, under the Acts of 
1832 and 1833, and transferred to the Superintendent; and also 
Certificates of deposite in the Bank of Tennessee. This informa- 
tion, obtained from the Banks, is set forth in a table hereto an- 
nexed, marked C. It sets forth the investments in the Banks, and 
the month and year of each investment. It also exhibits the 
monies received by the Superintendent from the Banks, as divi- 
dends, and also the bonus from the Planter's Bank. 

From this table it appears that the Superintendent has paid 
into the Banks the sum of seven hundred and forty four thousand, 
two hundred and eighty six dollars and twenty seven cents. Of 
this siim, however, there are five hundred and forty four dollars 
aid by the Superintendent to have been paid by him into the 
Union Bank as in part payment of stock before that time taken 
by the County Common School Commissioners of Henderson 
County. But of this he has no voucher, nor has he charged him- 
self with having received it. The Committee cannot therefore 
allow it as having been paid by him. Perhaps the truth of the 
matter is, that this dmount, said to have been paid in*- was only 
retained from the dividends that had before then arisen on the 
amount paid in by the Commissioners from Henderson County. 
Of the above amount paid in, $363,189 54 were of the pro- 
ceeds of the sales of the Ocoee lands. 

The certificates of stock shown your Committee by the Su- 
perintendent, are set forth in table G; which shows the shares 
taken by the County Commissioners in the Union and Planter's 
Banks, under the Acts above referred to, also those taken by the 
Superintendent, in the Planter's Bank; also the monies paid the 
Bank of Tennessee as capital stock, and as a sinking fund. From 
which, by comparison with table C, it will appear that he has 
paid into the Bank of Tennessee, $4,067 46, for which he had 
hot on the 18th November a certificate. 

It will be further seen that the whole amount of the Common 
School Fund of Tennessee invested in stocks, up to the I8th ult. 
is eight hundred and thirty five thousand thirty four dollars and 
fifty nine cents. 

h will appear from what has been said, that the Su- 
perintendent has certificates of stock purchased by 
himself, to the amount of 740,218 81 

That his disbursements, as shown by his own books, 

are 761,017 50 



Which will leave a balance said to have been by a ■ , * 

him expended, of 20,798' 69 



He has exhibited to us his expense account 
as follows; 

1. Paid on account of the old Bank on set- 
tlement with agents, balances due, At- 
torney's fees, &c. 2,871 9? 

2. Post Office account, 1,148 17 

3. Redemption of old State Bank Notes 
(which we have counted and burnt,) 1,141 13 

4. Counterfeit Changa Tickets taken by a- 

gents — burnt, 18 50 

5. uncurrent Bank pa per, do. 65 00 

6. Printer's account, viz. — Banner 
office, publishing sale of real es- 
tate, 63 00 

Do. extra newpapers, with School 

Act, 3 50 

Athens Journal publishing sale of 

real estate, 72 00 

American Presbyterian, printing 

blanks, 96 00 

Nashville Whig publishing School 

Act, 193 82 

Do. printing forms 380 63 

Union office printing blanks, 11 00 

David A. Street, pub. sale of 

real estate, 8 75 

829 45 

7. Books, Stationary, on account of col- 
lection of School Fund, and putting the 
School System in operation, &c. 210 81 

8. Agent's salary, clerk's hire, lawyer's 
fees, office rent; fees paid at Clerk's of- 
fices for searches, &c. 14,430 16 

20,715 19 



Leaving a balance of expense account of S3 50 

Which being unexplained, should not be allowed. 
To this amount add balance, as per table B, 115,425 83 

Also, amount by which Superintendent is credited 
for payment on stock of Henderson county School 
Fund, 544,00 



116.053 33 

To which must also.be added the difference between 
the interest as portable B, and the amount of inter- 
est with which the Superintendent, has charged 

2 



10 

himself for use of public money, 11,728 61 



Showing a balance of 127,781 94 

The Superintendent is entitled to some credits, (to wit:) 
By amount paid into Bank of Tennessee, as per Bank 
Statement up to 18th Nov. and for which Super- 
intendent has not received any certificate, 4,067 46 

123,714 48 

From which it will be seen, that if the account is correctly 
stated, the Superintendent appears to be a defaulter to the amount 
of one hundred and twenty three thousand seven hundred and 
thirty four dollars and forty eight cents. The Committee have 
examined the Superintendent, as to this balance. 
From the answers and statements made by him, the 
following account will exhibit the claims he offers 
as a set off — viz: Balance, 123,714 48 

1. Uncurrent money, balance on hand not 

taken into the previous account, 20 00 

2. Redeemed Bank Notes, 35 "43 

3. Reserved for Carter County, accumulat- 
ed interest, 400 00 

4. Do. Dixon County, do. do. 1,285 00 

5. Alabama and Georgia money, 1,560 00 

6. Deposited in Bank of Tennesse over and 
above the sum of $4,067 46 above cred- 
ited, 950 00 

7. Cash in hand, 6 86 

8. Interest — (viz: difference between the 
interest really due for use of public mo- 
nies (as per table B,) and interest charged 
by Superintendent,) which he does not 

admit, 11,728 61 

9. Amount of balance said by Superinten- 
dent to have been paid by him on Hen- 
derson County Stock in Union Bank, 544 00 

10. Balance of expense account which Su- 
perintendent says should be allowed him, 83 50 

11. Notes under discount, 107,101 08 



123,714 48 

We will examine these items in the order in which they stand: 
1 On the 21st November the Committee were shown all the 
uncurrent money the Superintendent (as he stated) then had on 
hand. The amount was $65 00. For this amount they gave 
him credit — though they did not think at the time it was right 
for either the Superintendent or his agents to make any sucfr 
charge. Having admitted this, and with a full understanding 



11 

tlu.t it was all he had received up to 18th Nov. they could not 
afterwards admit a new supply. 

2. Redeemed Bank Notes. This item should be admitted. 

3 and 4. The Superintendent has no right to reserve from the 
general fund any sums ip meet demands for accumulated inter- 
est. If the above Counties should at any time hereafter have a 
right to the monies mentioned, the fund is able to pay it. 

5. Alabama and Georgia money. As this is all the unbanka- 
ble money the Superintendent has on hand, the Committee are 
willing to admit it. Though, as a general rule it should not be 
done. For, the very moment we authorise either the Superin- 
tendent or his agents to receive depreciated notes, they will, 
after that time receive no other kind, and the School Fund, in- 
stead of increasing and fulfilling the great ends for which it was 
set apart, would become wholly worthless — the mere scape-goat 
to bear the losses of projectors and swindlers. 

6. The balance of monies deposited in Bank and not before 
credited, are, of course, admitted. 

8. The difference of interest has been already explained. 

9. And also the amount of $544 of Henderson Countv School 
Fund. 

10. The balance of $83 50 of expense account has been already 
explained: and if, from the Superintendent's own showing, it has 
not been expended, of course he should not be credited by it. 

11. "Notes under discount." This item requires explanation. 
The Superintendent says he had a right to lend out the school 
monies: that this right was given him by that part of the act of 
1836, already quoted. He also justifies the lending of this mo- 
ney to individuals, upon the grounds that a large amount was re- 
ceived in uncurrent paper upon different Banke. But does not 
show, when asked, what amount, from whom, or when he re- 
ceived said uncurrent money, not having kept Btoy record thereof. 

He does not admit the correctness of the interest charge made 
by the Committee over and above what he reports he has re- 
ceived as lie states; he had to make frequent and repeated loans, 
on time, without interest, of this uncurrent money, mixed fre- 
quently with par funds, so as to prevent a sacrifice of the School 
Fund, and that he was advised, and did keep some surplus fund 
constantly on hand to redeem the old notes and liabilities of the 
State Bank. On being questioned as to the general instructions 
he had given the county agents, touching the kind of money 
they should receive, he stated that his instructions were to re- 
ceive no other than bankable or current money. The, Commit- 
tee cannot conceive how the Superintendent could have derived 
from the section quoted (Act 1836, chap. 23, sec. 11) the powers 
he has exercised. It givps him no power to lend money, to dis- 
count notes, or buv andiell bills of exchange. Rut, if we could 



12 

for a moment suppose this power were given by the act of. 1836, 
the act passed January 19, 1838, makes a new disposition of the 
school monies. It provides (chap. 107, sec. 3.) "That the mo- 
ney belonging to the Common School Fund, which may now be 
in possession of the Superintendent of Public Instruction; or 
which may hereafter come into his possession, shall be handed 
over to the President and Directors of the Bank of Tennessee, as 
capital in said Bank," for which the said President and Directors 
were to issue to the Superintendent "certificates of debt." Yet 
it will be seen from the table E, hereto annexed, that after the pas- 
sage of this act, the Superintendent according to his own show- 
ing lent out, or "discounted on," between eighty and ninety 
thousand dollars of what he calls the School Fund. 

Your Committee required the Superintendent to make them an 
exhibit of the "notes under discount." Although they conside- 
that the State has no more claim to the notes referred to, than 
to the carriage or servants of the Superintendent, yet they be- 
lieved it their duty to enquire, and know what use had been made 
of the large balance heretofore and at this time in his hands. It 
will appear from table E, that he has lent this money to, or with 
it purchased notes and bills on. various persons and corporations 
in and out of. Tennessee, confined principally however to Nash- 
ville, Holly Springs, and Lincoln county; that of the nominal 
amount of one hundred and thirteen thousand two hundred and. 
ten dollars and three cents, said to be on the Sth of October, 
due and to become due— $42,194 80, were to come from Lincoln 
county, Tennessee; the sum of $28,746 33, from about Holly 
Springs, Mississippifand a large amount from the firm of M'Ew- 
en, Whiteman & Co., who are carrying on a Paper Mill in the 
town of Nashville; the balance from various places. The Holly 
Springs debts are in some way connected with a bank, formerly 
in existence in that town: and are at best a doubtful investment. 
This investment at Holly Springs is represented by the Superin- 
tendent to have been made as a means to convert monies under 
par to par funds. 

There is one debt charged to William B. Robinson & Co., with 
SL E. Gilliland and Saml. Rosebro as guarantors. The history 
of this debt is this; William B. Robinson and Robt. H. M'Ewen 
were in partnership in a mercantile establishment in Lincoln 
county. They took the money out of the School Fund to ena- 
ble them to carry on business, and gave their firm note to R. H. 
M'Ewen as Superintendent. The latter afterwards sold out nis 
interest to Gilliland and Rosebro, and they became bound for the 
payment of the note. 

The partners in the firm of M'Ewen, Whiteman & Co., are 
Robert H. M'Ewen, Oliver B. Hays, John M. Hill and William 
S. Whiteman. They are bound as principals and endorsers to a 
iarsre amount, 1 as mav be seen bv reference to the table. 



13 

It will also be seen that one debt of $6,827 76, has been due 
from Lincoln county for nearly three years. Also due from A. 
C. M'Ewen and others, relations of the Superintendent, for the 
same length of time. 

The rate of interest or "discount rates" of the Superintendent 
will also appear by reference to the table. On seeing this, the 
question arises, if the Superintendent has been able to realize 
eight or nine per centum on the monies he has been using for 
now nearly four years, ought he not to allow the State more than 
2| per cent? Yet he has not charged himself with more. 

The conduct of the individual placed by the Legislature at the 
head of a system of education, just put in operation, needs no 
rebuke at our hands — the facts will speak. 

The Committee could not therefore allow this item of "notes 
under discount" to form any part of the School fund. Deducting 
then the items believed to be allowable; viz: 
Balance, 123,714 48 

Redeemed Bank notes, 34,43 

Alabama and Georgia money, 1,560 00 

Deposited in State Bank, 950 00 

2,545 43 



$121,169 05 
And we find that, after making all fair and legal allowances, 
there is a total balance against the Superintendent of Public In- 
struction of one hundred and twenty-one thousand, one hun- 
dred and sixty-nine dollars and five cents; of which the sum of 
eleveiijthousand seven hundred and twenty-eight dollars and six- 
ty-one cents is for interest not accounted for. 

The Committee, after ascertaining this extraordinary deficit, 
were anxious to see whether the provisions of the second sec- 
tion of the act of 1836, chapter 23, requiring the Superintend- 
ent to give "bond with good and sufficient security," to be ap- 
proved of by the Governor, had been properly complied with. 
They have examined the bonds on file in the office of the Secre- 
tary of State, and find the first bond, dated 24th February, 1836, 
to be signed by O. B. Hays, Wra. Edmiston, John Scott, R. C. K. 
Martin, John Trimble and S. E. Gilliland. The second bond, 
dated the 19th February, 183S, has the same individuals as se- 
curities, with the addition of John Lanier, Samuel Rosebro and 
E. M'Ewen. The first bond has on it this endorsement: "I ap- 
prove of this bond and the securities herein given. N. Cannon." 
The second bond seems not to have been approved of by the 
Governor; cr, if it was, there was no recorded evidence of such 
approval. There is an endorsement on it, however, purporting 
to have been made by Charles Boyles, clerk of the county court 
of Lincoln county, in which he informs us that "Samuel E. Gil- 



14 



liland, Samuel Rosebro, John Lanier and Ebenezer M'Ewen, se- 
curities to the foregoing bond, are jointly worth the penalty 
thereof and more." By reference to table E, it will be seen to 
what extent these securities are liable for accommodations given 
out of the public monies. Your Committee, however, would not 
w r ish to be understood as intimating that there was, on the part 
of these gentlemen, any thing of unfairness. So far as borrow- 
ers and endorsers are concerned, the Committee have no proof 
that they were not ordinary business transactions. They submit 
the facts. 

The Committee have also had under consideration the "distri- 
bution of the school monies that were to be distributed;" and 
they are of opinion that, so far as the Superintendent is con- 
cerned, the same has been properly done. Any difficulty that 

may have been occasioned in the distribution, has happened 
through the neglect or indifference of subordinate agents. 

Since the commencement of this investigation, the Entry Ta- 
ker of Ocoee district has paid into the Bank of Tennessee the 
sum of $141,869 21, which swells the amount already received 
from that source to the sum of five hundred and five thousand 
fifty-eight dollars and seventy-five cents. 

The Committee have also had before them a correspondence 
between the Entry Taker of Ocoee district, the Superintendent, 
and the President of the Bank of Tennessee. As it refers to 
some matters not within the range of their inquiries, they will 
only lay it before the Legislature as they receive it. 

It has been a desirable object with the Committee to ascertain 
as nearly as practicable the whole amount and character of the 
Common School Fund of Tennessee. Including stocks, monies, 
debts, (good and doubtful,) and real estate, it is estimated at one 
million three hundred and seventy-nine thousand eight hundred 
dollars and ninety-eight cents, viz: 





Good. 


Doubtful. 


Bank Stock, 


930,755 02 




Internal Improvement Stock, 


46,139 78 




Due from County agencies, 


73,275 05 


16-966 40 


Notes due from debtors to old Bank, 


4,692 23 


4,404 71 


♦Securities of Joel Parrish, 


5,902 66 




Judgments, accounts, &x. due to old Banks, 


22,257 51 


45,473 57 


Due from Superintendent of Public Instruction, 


121,169 05 




Real Estate, 


3,765 00 




Supposed sum yet to be derived from Ocoee, 


125,000 00 





|l ,332,956 30:66,844 68 1,399,800 93 

From the above, it will be seen that the School Fund of Ten- 
nessee is large, and, if properly managed, will do more good, and 
confer more lasting benefits upon our country than the same 



*See Table F. 



15 

amount of money used in any other way. The Legislatures of 
our State have been long and perseveringly engaged in the diffi- 
cult business of accumulating a valuable fund for purpose sof 
education. But, in spite of all their efforts, it has been time af- 
ter time plundered by a thousand hands If we desire to pre- 
serve and cultivate the ample fund we now have, we should 
place such restrictions upon those through whose hands it must 
pass, that they will not waste it with impunity. It is a duty we 
owe ourselves, our children, and the Constitution, to preserve it 
unimpaired. 

All which is respectfully submitted. 

H. YOAKUM, Chairman, ) Committee 
P. ANDERSON. } on part of 

JOHN E. WHEELER, ) the Senate. 



A. JOHNSON, Chairman, *\ Committee 

F. BUCHANAN, VoTZTof 

BARKLEY MARTIN, XtheHovL 

N. FAIN. J 



